Debt Recovery FAQs
What is a demand letter?+
A demand letter is a written demand for payment of a debt within seven days from the date of the letter. It is also known as a “letter before action” as it informs the debtor of your intention to issue legal proceedings against them for recovery of the debt should the debtor fail to pay within seven days.
What is an Affidavit of Debt?+
An Affidavit of Debt is a legal document setting out particulars of the legal action against the debtor which must be sworn by the creditor in order to take up Judgment against the debtor for the amount outstanding.
Who is the Sheriff?+
A sheriff enforces the Judgment obtained against debtors for the collection of debt. There are Sheriff offices in counties Cork and Dublin. A Sheriff is a self-employed person paid for their enforcement work on a commission or “poundage” basis.
Sheriffs have the power to enter the debtor’s property and seize goods. In entering a debtor’s property a sheriff must make reasonable efforts to do so peaceably although a Sheriff may make a forced entry. In some cases, a Sheriff may not seize goods where there are none to seize or the goods are of low value.
What is a European Enforcement Order?+
Within the EU, where a creditor brings a civil uncontested claim against a debtor, proves that their claim was properly served on the debtor and obtains a Judgment against that debtor, that creditor may apply to have the Judgment certified as a European Enforcement Order.
Once the European Enforcement Order has issued from the court, it may be sent to the enforcement authority of another EU country where the debtor resides or where their assets are located.
The country where the creditor wishes to enforce the European Enforcement Order must recognise that Order and the creditor will be able to enforce that Order under the usual rules of that country. Only if there is another Judgment in that other EU country between the same parties that is irreconcilable with the European Enforcement Order, will that other EU Country be entitled to refuse enforcement.
What is a Judgment Mortgage?+
Where a creditor obtains a Judgment against a debtor and the debtor owns any real property, the creditor may apply to the Court on Affidavit to have a Judgment Mortgage registered on the debtor’s interest in that property.
Is there interest on a Judgment?+
Under Irish law, interest of 8% is chargeable on the Judgment debt from the date of the Judgment.